News Hub: If Fed Eases Further, Tiptoe Likely

Jon Hilsenrath discusses the likelihood that the Federal Reserve will act gradually if it decides to act again to stimulate the economy.

This transcript has been automatically generated and may not be 100% accurate.

Gou ... the lead ... the spread on a Washington D C what don't help unwrap all the Wall Street now is standing by ... Johansson has fed in May when the Fed's next move if it moves a mandate in a new strategy new tactics tells about that ... Torstar what they call soccer was so we're back in March of two dozen nine when the economy was reeling in the financial markets were willing ... to take and consider it to one point seven billion dollars worth of ... securities purchases of mortgage backed securities in Treasuries ... yield now is they consider whether to start doing securities purchases again they're looking at a smaller more incremental approach ... you know what we can call a baby steps approach and ... that's part of that debate that's unfolding there we still don't know whether they're actually going to do anything ... they have to see how the economy does over the next few weeks ... but if they do something I think it's ... fairly odd ... is looking increasingly likely that there may take more of a baby step approach and which are not ... that I'm Halifax By and what's what's all the money ... we talking about in these baby steps a one-month period ... we know that we don't have the money in out yet I'm in the first thing that we're trying to figure out what the tactic ... would be an attack that would be something like your announcing ... some small while I mean we've not really small but darkness more than one point seven billion dollars ... amount of monthly purchases or purses in between meetings ... and they would leave it open ended and say we'll see how the economy does this I wanna keep doing this program ... yet the Number that's in the market is that maybe something over the course of the year would accumulate to enjoy in dollars ... but they would only be announcing in small steps that if the economy improves ... they turn the switch off and I and stop doing ... so for John if you're a situation where the Fed's going last shot last all ... new and more small-scale ... do you think that's not a signal that ... they they don't think that they ... really should go lower but what can be effective going large they wanted more preserve freedom that their firm actually failing ... well you know I I think we're in a much stiffer world today than we are an in March two thousand I knew in March two thousand I ... they really did look like the economy was going over the ads look like the financial system was over the dollar over the edge ... they had to do something very BA ... for very books the statement I ... know now we're a world where we have a recovery the financial markets have gotten back to some kind of normalcy ... and so you know what they're looking at is trying to take steps that we get that ... there might accelerate growth ... but they don't I don't think they feel a need to do something is great and all that they did back then because the set of circumstances on the stock and and and I thank goodness the circumstances have changed ... but the event that Jon Hell's mouth with a Wall Street now ... and washing DC checkup doesn't want to ... Songdo online Annaly's thank you very much ...